Brent rose to $78.23 per barrel on OPEC+ decision

On Monday, oil prices show an increase in the results of the OPEC+ meeting. Brent crude oil rose to the level of $78.23 per barrel, North American WTI oil – to $73.60 per barrel.

Moreover, last week both benchmarks ended with a decrease in value by 1.1% and 1.3%, respectively. Moreover, both varieties showed a weekly decline for the first time in three weeks.

Yesterday, on June 4, a meeting of OPEC+ countries was held in Vienna, at which it was decided to reduce the level of oil production quotas for 2024 by another 1.4 million barrels per day – up to 40.46 million barrels per day. Countries that voluntarily reduce production by 1.66 million b/d since May will extend the cuts for the whole of 2024.

Saudi Arabia will further reduce production by 1 million b/d during the current year. The country is also thinking about the possible extension of such a measure every month, depending on the market situation.

Analysts note that the results of the OPEC+ meeting speak more about Riyadh's concern about the level of short positions in the oil market than about concerns about the prospects for demand.